Question: please explain in 2 to 3 paragraphs how this would be useful for a manager to know before going to Argentina Political and economic and
please explain in 2 to 3 paragraphs how this would be useful for a manager to know before going to Argentina
Political and economic and other institutional powers that shape the business environment. There are some political and economic and other institutional powers that shape the business environment in Argentina that a foreign business should be aware of. Throughout Argentina's history, it has had a long history of political and economic instability. Concerning the country's economy since 1950, this country has spent one-third of that time in a recession. In 2020, Argentina's general government balance was -2.7 percent of GDP, and the debt-to-GDP ratio was anticipated to be 103 percent the highest since 2004, with serious doubt about Argentina's ability to service its debt. Due to poor internal demand and a drop in industrial sales caused by the epidemic, both imports and exports decreased in 2020. Furthermore, with the government currently facing a problematic debt renegotiation, fiscal stimulus has been limited. (Santander trade, 2021). Argentina has enjoyed a relatively stable political climate for the past decade and a half. The President is concentrating their efforts on improving the country's infrastructure. Argentina does this by attracting foreign investors and enacting new legislation to encourage regional trade. Slowing economic growth, import, and foreign exchange restrictions, and drastically reduced pricing for Argentina's main exports contribute to an unclear prognosis for the Argentine economy in 2015, with growth predictions ranging from slightly negative to 3%. Independent economists predict that inflation was 30 percent in 2014 and 24 percent in 2015, resulting in higher prices and a more challenging economic climate, mainly because the actual effective currency rate has significantly gained since a January 2014 devaluation (trade.gov. 2020)
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